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Startup Hacks: 5 Tips for Offshore Outsourcing

This is a guest post written by Michael Cerda. He blogs about startups, people and the variety hour at Cerdafied.

Outsourcing product development (or parts of development) offshore sounds like a good idea at the time. After all, you can augment your dev group quickly and on the cheap. But it only seems to work under certain conditions; mileage does vary depending on the company. Longer-term enterprise development projects tend to be better suited for outsourcing than shorter-term consumer Internet projects for example (I learned this the hard way). It has to do with development cycles, level of skill required for tasks, time to market, and the ability to iterate.

Arguably, you shouldn’t ever completely outsource your product development. Some things are just too strategic to lose control over. If you do decide to outsource some parts, here are some tips.

1. Hire one of them

Hire someone locally who was originally from the country you’re outsourcing to. Oftentimes different languages or dialects exist in other countries, so be sure your guy speaks the lingo. Also be tuned into other cultural nuances (for example, make sure there aren’t centuries-old bad blood between your guy and the people at the firm you use).

2. Nurture them

You’ll want to take the time and make the investment in having an occasional call or even a visit to the offshore location. Offering a face and voice from the top helps gain buy-in, support and motivation for the project. Obviously if you have to do too much of this, it’s not worth it.

3. Package the tasks

Be mindful not to overwhelm them with a complex project with multiple touch points and dependencies. Have a baked, signed off spec completed and committed to and assign straightforward pieces of it. When you assign something, ask for a time/cost estimate which you can measure back to later. Once the work has been verified and tested you’ll be able to establish a baseline level of quality and performance; from there you’ll be able to give them more rope.

4. Top grade

Offshore dev shops tend to assign you a mixed team of some good folks, some ok folks, and some green folks. These proportions are simply part of their business model. Just don’t let it get the best of your development cycle and product quality. Ask for resumes and interviews of the people they’re assigning to your team.

5. Communicate with one voice

Use the guy from #1 to funnel all communications between your team and theirs. Besides language and time zone issues, there are project management and accountability requirements. The more chiefs you have, the more fingers you have pointing. You can’t afford the he said/she said.

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